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Below the Views on Morning market 26th October 2026 from Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited?

"Despite the slight cooling in Brent crude price to below $115, the price continues to be too high and, therefore, will constrain any rally from the low level of 22600 which Nifty touched last Friday. Investors should not bother about the index levels in the near-term. Their focus should be on the value buys that have emerged from this correction, even while exercising caution about the macro fallout of the high crude prices. 

An important lesson from market experience is that when valuations reach very high levels, a reversion to mean is inevitable. This was what happened in mid-and small-caps last week, particularly on Friday. The crash in the broader market was mainly due to the forced liquidation of the margin funded trade. The broader market continues to be over-valued, but this sharp correction will open up opportunities in high-growth segments in the broader market. 

The weakening of the AI trade is positive for India. In September and October, so far, the capital flight from South Korea and Taiwan from FPI selling is more than the capital outflow from India. This is an important trend."

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